United Auto Credit Corp. had to pay up for a triple-A credit rating on its latest offering of bonds backed by subprime auto loans.

The senior tranche of the $147.5 million transaction, which is rated triple-A by both S&P Ratings and DBRS, benefits from initial credit enhancement of 60.48%, more than six percentage points higher than the 53.9% on its previous transaction, completed in 2016.

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